Missouri Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan

• Category: Loans and Lending
• State: Multi-State
• Control #: US-1176BG
• Format: Word; Rich Text

Description

The main purpose of this document is to subordinate the lease to the deed of trust or mortgage (if applicable), and have the tenant agree to be bound by the lease to a new owner in the event of foreclosure. A Missouri Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document frequently used in real estate transactions involving commercial loans. It outlines the agreement between the lender, the tenant, and the landlord regarding the priority of their respective rights and interests in the event of default or foreclosure. Keywords: Missouri Subordination, Non-Disturbance, Attornment Agreement, Lease, Commercial Loan. There are two main types of Missouri Subordination, Non-Disturbance, and Attornment Agreements related to commercial loans: 1. Subordination Agreement: In this type of SODA, the tenant agrees to subordinate its lease rights to the lender's mortgage or security interest in the property. This means that in the event of default or foreclosure, the tenant's leasehold interest becomes inferior to the lender's interest. By subordinating their rights, the tenant acknowledges that the lender's rights take precedence over their leasehold interest. 2. Non-Disturbance Agreement: In a Non-Disturbance Agreement, the lender agrees that, in the event of default or foreclosure, as long as the tenant complies with the terms of the lease, the tenant will be allowed to enjoy the premises undisturbed by any actions taken by the lender. This agreement gives the tenant some assurance that its lease will be honored even in the event of foreclosure or a change in ownership. It's worth noting that both the Subordination Agreement and Non-Disturbance Agreement are typically combined into a single SODA that includes the tenant, landlord, and lender as parties. This comprehensive agreement offers protection to lenders while providing tenants with the assurance that their rights as lessees will be respected. Additionally, an Attornment Agreement is often included in an SODA. It establishes the tenant's obligation to recognize and attorn to (except) a new owner or landlord in the event of foreclosure or change in ownership. The tenant agrees to continue performing their lease obligations under the same terms and conditions as previously agreed upon, regardless of the change in ownership. In summary, a Missouri Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan is a crucial legal document that addresses the rights and obligations of the lender, tenant, and landlord in the context of a commercial real estate loan. It ensures that all parties are protected and their interests are defined if default or foreclosure occurs.

A Missouri Subordination, Non-Disturbance, and Attornment Agreement (SODA) is a legal document frequently used in real estate transactions involving commercial loans. It outlines the agreement between the lender, the tenant, and the landlord regarding the priority of their respective rights and interests in the event of default or foreclosure. Keywords: Missouri Subordination, Non-Disturbance, Attornment Agreement, Lease, Commercial Loan. There are two main types of Missouri Subordination, Non-Disturbance, and Attornment Agreements related to commercial loans: 1. Subordination Agreement: In this type of SODA, the tenant agrees to subordinate its lease rights to the lender's mortgage or security interest in the property. This means that in the event of default or foreclosure, the tenant's leasehold interest becomes inferior to the lender's interest. By subordinating their rights, the tenant acknowledges that the lender's rights take precedence over their leasehold interest. 2. Non-Disturbance Agreement: In a Non-Disturbance Agreement, the lender agrees that, in the event of default or foreclosure, as long as the tenant complies with the terms of the lease, the tenant will be allowed to enjoy the premises undisturbed by any actions taken by the lender. This agreement gives the tenant some assurance that its lease will be honored even in the event of foreclosure or a change in ownership. It's worth noting that both the Subordination Agreement and Non-Disturbance Agreement are typically combined into a single SODA that includes the tenant, landlord, and lender as parties. This comprehensive agreement offers protection to lenders while providing tenants with the assurance that their rights as lessees will be respected. Additionally, an Attornment Agreement is often included in an SODA. It establishes the tenant's obligation to recognize and attorn to (except) a new owner or landlord in the event of foreclosure or change in ownership. The tenant agrees to continue performing their lease obligations under the same terms and conditions as previously agreed upon, regardless of the change in ownership. In summary, a Missouri Subordination, Non-Disturbance, and Attornment Agreement of a Lease regarding a Commercial Loan is a crucial legal document that addresses the rights and obligations of the lender, tenant, and landlord in the context of a commercial real estate loan. It ensures that all parties are protected and their interests are defined if default or foreclosure occurs.